Sex in the city -- and in the workplace

Last April, six female employees charging sexual harassment at Ralph's grocery chain won $30.6 million. That was the largest court-imposed sexual harassment judgment in U.S. history -- until the next one comes along.

If you think your company is immune from a sexual harassment suit just because it's small, think again. Businesses with 25 or more employees must comply with Section VII of the Civil Rights Act of 1964, which deems sexual harassment is sexual discrimination and is therefore illegal.

Breathing easier because you have fewer than 25 workers? Don't. Many state and local governments have their own ordinances against sexual harassment and these can apply to firms with as few as five employees.

And even if there isn't a law on the books, isn't protecting your employees the ethical thing to do?

Various actions constitute harassment
A small-business owner needs to know exactly what constitutes sexual harassment or a hostile workplace environment. That isn't always easy.

Robert Turk, chair of the employment practice group at the law firm of Gunster Yoakley in West Palm Beach, Fla., defines sexual harassment as something of a sexual nature that a reasonable person would find objectionable in the workplace. That includes everything from just staring at someone, notes Turk, to actual physical assaults.

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"It can include such things as the way people dress, sexually inappropriate comments, telling dirty jokes, someone who only yells at women," according to Turk.

What makes for sexual harassment isn't just the content of the message, such as a calendar with "dirty pictures," but the frequency and pervasiveness of the harassment. "It has to be severe and persuasive," Turk says. "Telling one dirty joke doesn't cut it."

Sexual harassment, however, doesn't have to be face-to-face. An employee can harass a co-worker through e-mail or by posting sexually explicit publications on a company bulletin board, Turk says. Even office memos could be deemed offensive.

For more information on sexual harassment and a company's responsibilities, check out:

The same rules apply outside corporate confines. Steven J. Lorenzet, assistant professor of management and human resources at Rider University in Lawrenceville, N.J., notes that it can occur at offsite company events, such as office picnics.

And it's not confined to one gender. A male supervisor can harass a female subordinate, a male peer can make lewd comments to a fellow male employee, or a woman boss can offer to promote an employee in exchange for sexual favors.

Experts divide sexual harassment into two categories: quid pro quo and hostile workplace.

Quid pro quo is the outright asking for sexual favors in return for keeping your job or being promoted, says Lynda Ford, president of The Ford Group, a management and human resources consulting firm based in Lee Center, N.Y.

"A hostile work environment occurs when workplace conduct unreasonably interferes with worker's job performance," Ford says. While the courts do make a distinction between the two, she says the lines are blurring.

Four steps to stem harassment
With a shifting legal landscape, preventing a hostile work environment is usually a company's best move. Mary N. Wong, president of HRizen Solutions, an HR consulting firm in Houston, says small companies can guard against sexual harassment complaints by taking these four simple steps:

1. Establish and maintain a written policy against harassment of any kind.
The policy should outline what constitutes sexual harassment, what reporting process is in place for complaints, ways to investigate sexual harassment and disciplinary actions that will be taken against employees found to have sexually harassed a co-worker.

2. Disseminate the policy to all employees.
All new employees should receive the policy as part of their orientation. Also document that each employee has received, read and understands it. That means, for example, that you require workers to sign a form attesting to their reading the policy. "I've seen a company with a great policy, but without training no one knew it existed so it was just a piece of paper," notes Florida attorney Turk.

3. Conduct sexual harassment training at least once a year.

A company's HR staff can conduct the training, but because of the sensitive nature of such training, Wong says it may make sense to use a third-party. "An employee might feel uncomfortable explaining these scenarios to people that they have to go and work with the next day," Wong says. "We consider using a third-party to be the smart thing to do."

4. Develop and adhere to a predefined investigation method.
The investigative procedure should include a reporting process as well detail consequences and protection issues. Lynda Ford recommends using a third-party for the investigation of sexual harassment claims. That will ensure it gets done right. "Most people don't know how to do an investigation and they should outsource it," says HR consultant Ford. "It might cost you $2,000, but that's nothing compared to the thousands, hundreds of thousands and even millions that a law suit would cost."

Small companies have a responsibility to educate their workers about sexual harassment, particularly to the extent that they may find themselves legally liable for the actions of one or more employees, says Rider University professor Lorenzet.

"If the company has communicated and educated its workforce regarding sexual harassment, made it clear that it will not be tolerated and consistently followed its own sexual harassment policies," notes Lorenzet, "it is taking several positive steps toward limiting its legal liability."

Don't deny the problem
Ford agrees that it's important for companies, regardless of size, to show zero tolerance for sexual harassment. In doing so, an employer demonstrates it is making a good faith effort to curb sexual harassment in the workplace, the consultant says.

The biggest mistake that small companies make is to deny there is a need for a sexual harassment policy. "That's the hardest thing," Turk says. "The small business owner says 'I'm not like a big business, that's why we're different.'"

But in reality, a small-business owner needs to pay more attention to the details of a sexual harassment policy. That's because a smaller workgroup can make it harder for an employee to complain.

While following these steps won't eliminate the risk of a lawsuit, they can go a long way to protecting your employees. And in a worse-case situation, a proactive policy can help show a court that your company did the right thing when it came to trying to prevent sexual harassment.

Jenny C. McCune is a contributing editor based in Montana.

-- Posted: July 26, 2002

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See Also
Hiring in the new millennium
High cost of workplace bullies
How to handle online corporate harassment
Small-business glossary
More Small Biz stories

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